Advice: If you always bank on a big refund, change your withholding for a bigger paycheck
“Our tax withholding estimator offers workers a great way to target the refund range they’re comfortable with,” said IRS spokesman Eric Smith.
If you’ve received your refund already or just filed and are waiting for it, keep that promise to yourself to use it wisely. Failing to do so reminds me of something my youngest child said to me when she was 4. This is another pot of money to cover such unexpected financial emergencies as a major car repair. You’ll withdraw money from this fund to pay for expenses that would diminish your emergency fund, leaving you vulnerable if your income drops.Credit card balances jumped to $986 billion in the fourth quarter of 2022, surpassing the pre-pandemic high of $927 billion, according toYes, you need some money in a rainy-day fund.
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